Gastar sees revolver borrowing base double to $100 million after reset

By Susanna Moon

Chicago, March 5 - Gastar Exploration Ltd. said the borrowing base under its senior secured revolving credit facility was reset at $100 million, up from $50 million.

The new borrowing base is effective immediately, and the next redetermination has been set for November, according to a company press release.

Gastar has drawn $27 million under the revolver, which leaves $73 million of unused borrowing capacity.

The company said that Gastar Exploration USA, Inc. has issued series A preferred stock for proceeds of $36.8 million so far this year.

"We believe the additional liquidity afforded by this borrowing base increase, along with the proceeds from the continued issuance of our series A preferred stock and internally generated cash flow, will be sufficient to fully fund Gastar's $134.2 million 2012 capital expenditures budget," Gastar's chief financial officer, Michael A. Gerlich, said in the release.

The increase in the borrowing base reflects the value created by the initial development phase of Gastar's liquids-rich Marcellus Shale position, he said.

Gastar is a Houston-based company engaged in the exploration and production of natural gas and oil.

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